Best mortgage deals for buy-to-let investors

Buy-to-let investors tend to get mortgages on an interest only basis, though capital repayment options are also available.

Our roundup of the best deals, below, is based on someone borrowing on an interest-only basis against a £250,000-property for 20 years, though you can compare other property prices, repayment periods and loan-to-value (LTV) ratios at

Our buyer is paying fees up-front. 

75% LTV

Accord Mortgages has one of the best fixed-rate deals for buy to let investors, charging 2.19% until January 2019. With a £1,158 initial fee and monthly repayments of £342 our buyer will pay £9,366 over the first two years. After the fixed-rate period, the standard variable rate of 5.54% implies repayments will rise to £804, though that might change.

Alternatively, Virgin Money will lend at 2.45%, also fixed until January 2019, but with a lower £709 fee. That’ll cost £383 per month, and £9,901 over the first two years. The SVR is currently 4.54%, and if it doesn’t change then monthly repayments will rise to £645 per month.

If you’re willing to take your chances with a variable rate mortgage then Platform will charge 1.84% over the base rate for two years. That’s currently £366 per month. Including the £1,033 initial fee our buyer will have paid £9,817 after two years. After two years the 5.5% SVR (variable) will push rates to £793. 

60% LTV

Deals are slightly more attractive with a 40% deposit, with rates available for well under 2%. However, these headline-grabbers carry chunky fees, and often aren’t the best value deals when you crunch the numbers.

For example, Accord Mortgages lends at 1.64%, or £205 a month to borrow £150,000, fixed for two years. However, borrowers will need to pay £2,203 in initial fees, so the cost over two years is £7,123. The SVR is relatively high at 5.54% SVR, meaning repayments will triple, rising to £655 so it’s vital to make a note to remortgage.

Skipton’s 1.84% deal, fixed until November 2018, works out cheaper thanks to a relatively low £995 fee. It costs £230 a month and £6,515 over two years. A 4.94% SVR implies repayments will rise to £578, if the base rate doesn’t change when the fixed term expires.

Virgin Money has the leading variable rate, if you factor in the £709 fee. The rate is 1.8%, or 1.55% on top of the Bank of England base rate. At 60% LTV monthly repayments are £225 and the two year cost is £6,109. Repayments will increase to £530 providing the SVR holds at its current rate (4.54%).